Which economic theory assumes individuals will use past values of inflation to predict the possible expected...

Which economic theory assumes individuals will use past values of inflation to predict the possible expected future values of inflation?

rational expectations

Keynesian economics

adaptive expectations

Expert Solution

Option 3) is correct answer-adaptive expectations theory assumes individuals will use past values of inflation to predict the possible expected future values of inflation.

Rahul Sunny answered 1 year ago

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Which economic theory assumes individuals will use past values of inflation to predict the possible expected...

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